Georgia Power and Energy Planning Julie Paul Environmental Affairs Georgia Power Company January 14, 2013.

Georgia Power and Energy Planning

Julie PaulEnvironmental AffairsGeorgia Power CompanyJanuary 14, 2013

Today’s Discussion

Introduction to GPC and Energy Policy

Demand for Electricity and Need of Fuel Diversity

Emissions Reductions

Who we are

Largest of four Southern Company electric utilities $7.2 billion in revenue 2.3M+ customers 9,000 employees 13,000 miles of

transmission lines 61,000 miles of distribution lines Rates below the national average High customer satisfaction

2011 Georgia Power Generation

Generation Mixes in the U.S.

Growing Demand for Electricity

• From 2000-2030, Georgia’s population is projected to increase by 4 million residents.

• By 2030, 40% of the population of the United States will live in the South.

• Electrical demand is projected to grow 30% during next 15 years!

US Census Bureau

Policy “Purpose”– Influence Decisions

What Decisions?– Electricity Segment– New Generation– Drive Markets– Drive Economic Development

Whose Decisions?– Utility– Regulator– Consumer

Energy Policy Issues

Cost Reliability Funding Research Efficiency Sustainability Conservation Environment

Energy Policy Issues

Elements of a Policy: National Security Implementation

• Incentives• Regulations• Markets

Demand Growth Economy Equitable

White House Department of Energy EPA Georgia PSC Georgia Environmental Protection Division Georgia Power Electric Membership Co-Ops Environmental Organizations Consumers

Energy Policy Issues

Who Sets “Policy”

White House Department of Energy EPA Georgia PSC Georgia Environmental Protection Division Georgia Power Electric Membership Co-Ops Environmental Organizations Consumers

Energy Policy Issues

Who Sets “Policy”

Different Priorities Lead to Different Policies = Different Decisions

Environmental StrategyAchieving the right balance…..

Energy Economy

Environment

U.S. Electricity Cost by State

Electricity Prices by State - National Electric Rate Information by Copyright © 2011 ElectricChoice.com. All rights reserved

U.S average residential retail price of electricity was 11.53 cents per kilowatt-hour in 2010

Coal Control Technologies

Improving Air Quality

Scrubbers (SO2 and Hg)

Currently: 13

Selective Catalytic Reduction (NOx)Currently: 16

Sorbent Injection & Baghouse (Hg)Currently: 4

Electrostatic Precipitators (PM)Currently: 33

Plant Kraft

Plant McDonough

Plant McIntosh

Plant McManusPlant Mitchell

Non-fossil: Nuclear

Plant Vogtle

Fewer Components Reduce Plant Costs

45% Less Seismic Building Volume

50% Fewer Valves

35% Fewer Pumps

80% Less Pipe

70% Less Cable

Non-Fossil: Biomass

Generation Efficiency

Plant McDonough CC Replacing 540 megawatts of coal-

fired generation with more than 2,500 megawatts of natural gas-generation (will supply 625,000 homes)

Creates significant emissions reductions

– NOx by 85%– SO2 by 99%– Mercury by 100%– CO2 rate by 50%

Promoting energy efficiency– Distributed over 330,000 CFLs between 2006-2009– Rebates for Energy Star appliances– Provide free in home energy audits– Recycle old refrigerators and freezers

Renewables

Renewables

Customers may sell some or all of generated electricity to GPC

Small generators (<100kW) under RNR-7 and SP-1

Large customers (<80MW) as a QF

Solar Demonstration Project

Green Energy & Solar Initiative

Purchasing Green Energy– $3.50 per block, biomass– $5.00 per block, at least 50%

solar– Special Event Purchase

Option

Advanced Solar Initiative– Proposed program that

encourages solar development

– Supply agreements with independent developers and customers

– GPC does not earn a profit, but acts as a technology facilitator

– Program debut in early 2013

A Matter of Scale

Coal/Nuclear

Hydro

Solar Wind

Biomass 1 Plant ~ 1000 MW

1 Turbine ~ 3 MW 1 Installation ~ 50 MW

1 Dam ~ 45 MW

Georgia Power Peak Demand = 18,360 MW (8/10/07)

1 Unit ~ 100 MW

VS.

1 MW = Energy Needed To Power 250 Homes

Emission Trends

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

1990 1995 2000 2005 2010

Georgia PowerEmissions Trends

SO2 Down more than 80%NOx Down more than 75%

Hg Down more than 75%

Population Up 50%

Retail Sales Up 55%

Greenhouse Gases

Carbon Dioxide Water vapor Methane Nitrous oxide Chlorofluorocarbons (HFCs and PFCs) Sulfur hexafluoride (SF6)

CO2 has risen from 280 ppm to 380 ppm since the industrial revolution began.

U.S. GHG Emissions by Sector

Source: U.S. Environmental Protection Agency, Total U.S. Greenhouse Gas Emissions by Economic Sector in 2010

How to Cut CO2

Cut Fossil Fuel Usage Use Non-fossil

• Nuclear• Renewables

Use less energy• Efficiency & DSM• Increase Cost

Generation Efficiency• Combined Cycle• IGCC• SmartGrid

Develop CO2 Management Technologies

No Current Technology

Capture & Sequestration• Estimated Availability ~

2025

• Develop Offset Programs

Climate Change Solutions

CO2 Capture &Storage– The National Carbon Capture Center

• Managed by Southern Company• Collaboration with DOE, scientists, technology developers, industry, university

– Kemper County Integrated Gas Combined Cycle• Capture 65% of CO2 to be sold for enhanced oil recovery• Only IGCC plant in U.S. to capture and store CO2 during commercial

operation

– Start-to-Finish Carbon Capture & Storage• Alabama Power, Southern Company, DOE, Mitsubishi, EPRI• Largest in the world connected to a pulverized coal-fired generating plant• CO2 supplied to DOE and permanently stored in a deep geological formation

GPC Generation Mix (MWh) GPC Generation Mix (MWh) GPC Generation Mix (MWh) GPC Generation Mix (MWh)

2020

?

Summary

Growing population increases electrical demand

Affordable, reliable service by maintaining diverse fuel portfolio and promoting energy efficiency

Addition of pollution control equipment to minimize emissions

Georgia Leads the NationGeorgia Leads the Nation